Urgent Help needed
I need some urgent help with the below:
A company sells sporting goods via their website and partners all around the world. They send stock to these partners, who have their own stores and bills them for what they sold only. The unsold stock comes back at the end of the season.In specific, for each one of these stores, there is a location in NetSuite and of course a Customer Account which are to be billed on a basis (weekly/monthly/bi-monthly/etc). The Merchandise department set up profiles on the items for each location (min quantity, re-order point, etc) and based on those profiles on a weekly basis and using a custom module in NetSuite, they replenish these locations (By creating Transfer Orders). The company will import the transactions the store made by creating Invoices/Credit Memos. The location on the Invoices and CM is the store’s location, as a result the stock gets updated in that location and we are able to replenish and so on.The problem
1. Let’s assume we want to send 100 swimshorts to a partner location
Company Warehouse: -100
Partner Location: +100
2. As the partner store is selling items, we import those transactions in NS for the partner location. Assuming that the store has sold 50 of those swimshorts the location now is:
Partner Location +50Problem 1
When the time for billing the partner is coming, the company is going to need to Invoice the partner for those 50 swimshorts by creating an Invoice which means that this will remove another 50 swimshorts from that location. (Partner location 0 stock)Problem 2
When the company will replenish the partner location, because it uses Transfer Orders, the items “arrive” to the location with cost price. This is wrong because the cost price of the items is the price (wholesale rate), we bill them at the end of month only for what they have sold.At this point, we would like to ask you to come up with a solution for those two problems above. The solution should enable us to overcome:
1. The stock issue when it comes to billing at the end of the season
2. How to transfer stock with zero COGS to the partner location
- When you say “As the partner store is selling items, we import those transactions in NS for the partner location,” what transactions are you importing? You could have a Sales Order for 100 items to the partner location and run fulfillments as the items get sold, then have an invoice for all the fulfilled items at the end of the season. If you are invoicing off of a Sales Order, there shouldn’t be an issue with double-negative inventory.
- If you aren’t tracking the shipping cost, you could use inventory transfers instead of TO’s, but I’m not certain that the GL impact is off even in the TO scenario.
Let’s say you have COGS of $10 and the wholesale price is $15
The transfer order would move the COGS of $10 from location A to location B. This has no +/- impact on COGS.
Then you sell the item for $15, you have a COGS impact and an income impact.
If you could post the GL impact of what you are seeing that might help craft the solution.